Pakistan’s financial fiscal deficit in July and October decreased from 1.97 percent to US $ 11 billion 78 million. During the same period, Pakistan’s exports increased 3.52 percent as compared to $ 12 billion worth of trade deficit. Pakistan’s economy remained intensely pressured due to lack of exports and imports, however, the Pakistan PTI Government introduced new reforms and started to reduce domestic imports, which resulted positive increase in profit.
Finance Minister Asad Umar also emphasized on expanding domestic exports to avoid the International Monetary Fund (IMF) and reduce debt burden. In the same way, imports of services also plunged 13.84pc to $2.22bn in July to September as against $2.58bn in same era last year although it had increased 4.88pc to $10.4bn in FY18.
Services, whose imports declined, included transportation, travel, communications, insurance, financial, IT sector and other business services.
Textiles and craft industries getting better due to to Prime Minister’s special package for exporters, due to 32 billion rupees, the exports increased during the last 18 months. It is also reported that China has agreed to provide Pakistani products worth $ 1 billion during its fiscal year to reach its markets.
However, it is not yet clear that under the Freight Trade Agreement, steps will be taken to increase Pakistani exports for China.